How to Tackle the Problem of Conglomerate Strategy

How do you craft a strategic plan for a group of companies? Why do so many efforts end up with nothing more than “last-year’s-plan-plus-5%?” Discard this path of least resistance if you hope to capitalize on COVID opportunities.

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit longtermstrategy.substack.com/subscribe

Misapplying Psychological Solutions to Practical Problems

Employee Productivity – Are you searching for psychological solutions to practical problems?

As an executive, have you fallen into the trap of looking for psycho-emotional solutions to issues of employee productivity? If so, you may need a fresh lens.

“I just don’t understand these people!”

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit longtermstrategy.substack.com/subscribe

Scheduling an Ordinary Strategic Planning Retreat? Cancel It.

Is your company preparing to conduct it’s customary annual retreat? You may want to scrap it and instead create a breakthrough event.

In the best of times, companies fall into a strategic planning rut. They follow the same routine each year, lulled into complacency by their accomplishments. The company’s leaders go through the motions, staying well within their comfort zones. Maybe this approach has worked for your company until now.

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit longtermstrategy.substack.com/subscribe

A CEO’s dilemma: having a great idea for a new strategy

If you’re the leader of an organization, what should you do when you develop an exciting, fresh strategic direction for your company? Before you rush in, take caution – you could do more bad than good if you don’t proceed carefully.

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit longtermstrategy.substack.com/subscribe

New Reasons to Stop Competing

Much of the MBA-level teaching around strategy focuses on beating the competition. Has that line of thinking been rendered obsolete by the pandemic, to be replaced by a fresh focus elsewhere?

Harvard’s Michael E. Porter is well-known for his thought leadership on competitive strategy – finding ways to beat your company’s rivals. Lately, however, his theories deserve a rethink, especially now that the end of COVID’s rampage is in sight. Has his main thrust of focusing on your competitors become obsolete?

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit longtermstrategy.substack.com/subscribe

Why You Need an After-McKinsey Retreat

If your company is using an outside strategy consulting firm like McKinsey, what is the best step to take after they leave? If their expensive advice is so useful, why might you still require another planning meeting?

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit longtermstrategy.substack.com/subscribe

How to Say No and Become More Productive

Is there a way to turn down requests from other people and thereby increase your productivity? In the changing world we live in, you may have to say more No’s.

This is a public episode. If you’d like to discuss this with other subscribers or get access to bonus episodes, visit longtermstrategy.substack.com/subscribe

How to Listen Productively in a Negotiation

The task of negotiating with other people is part and parcel of business-life. However, many hate having to do so, and a large percentage do so ineffectively. One cause is that most focus on the quality of their speaking, fixating on what they need to say. By contrast, masterful negotiators take a different approach: deep listening.

Years ago, I had the fortune of picking up “Getting to Yes” by Roger Fisher and William Ury. This classic book on negotiations outlines several principles; one of which is to listen keenly to uncover the true intent behind someone’s position.

The idea is simple enough: when people are in a negotiation, the job of making requests of their counterparts is unavoidable. On the surface, it seems to be a battle of wills: each side asks for what it wants repeatedly, until the other concedes or refuses. The best tactic is to figure out how to get what you want, while giving away as little as possible.

However, Fisher and Ury advocate a different frame: a “Win-Win” in which both parties benefit. As you may imagine, there are a number of positives to be derived from this approach, even though it requires more skill. Among them is the ability to listen powerfully to what the other party is not saying aloud.

The fact is, each of us asks for stuff we want all day. However, especially when the stakes are high and emotions are raw, we unwittingly hide our true needs and emotional wants behind words. It simply feels too risky to be honest.

But we aren’t being sneaky; it’s just that emotional intent doesn’t translate neatly into actions or objects. For example, a husband who asks his wife to make a cheesecake for his birthday isn’t necessarily asking her to procure a baked good, and may be upset when she purchases one from a store.

For him, the intent is to experience her love and care which means seeing her sacrifice time and attention in the kitchen making the cake from scratch. He may unwittingly want to relive a memory provided by his mother.

But his actual words: “Would you bake a cheesecake for my birthday?” don’t convey his entire intent. Therefore, the mismatch between the two could result in a marital spat, or in the business world, a failed negotiation. How can you get past this sticking point if you find yourself in a similar spot?

1. Notice the mismatch

Skilled negotiators know how to use their intuition to discern such subtle gaps. Something deep inside them indicates that all is not well. However, you may find that your MBA-like training leads you to pay attention to the logic of what is happening: the discernible facts.

But that’s not enough. Furthermore, detecting uneasy feelings is necessary, but not sufficient. Once the inner shift is realized, you must translate the sensation into accurate words.

“It seems that we are making progress, but something inside tells me that we are missing a big part.”

This is a bold step: it’s a request to stop the negotiation in order to investigate a mere hunch based on intangible emotions. Unfortunately, most people self-censor, telling themselves: “Don’t be silly – just move on!” When they do so, everyone loses.

If you’d like to move past sticking points in your difficult conversations, it pays to tune in to your inner feelings, and speak up.

2. Probing for Underlying Commitments

If you do call a time-out, and things seem stuck, it could be that you are giving the other party exactly what they are asking for…but it’s not enough. This is a moment when your intuition can help you probe for deeper reasons.

“I know you asked for cheesecake, but why do you want that for your birthday?”

This is a masterful move in any negotiation because you are probing behind the stated position to see why it was raised in the first place. But this is more than curiosity.

Going deeper opens up the range of possible solutions. For example, the smell of home-cooked cake on a special day could be satisfied by other kinds of baked goods which are easier or less expensive to make.

When you expand the number of options, a Win-Win becomes far more likely. Plus, when you probe their hidden commitments it shows that you care. It’s as if you are setting aside the overt demand for cheesecake in order to give the other person what they really want.

In this context, this kind of listening is powerful as it invents brand new outcomes which neither side could predict beforehand. Without explicitly saying so, the two opposing sides are now working as a team.

For a breakthrough in negotiations, start by deeply listening beyond the words to yourself, and the other person’s true needs.

Why CEOs’ Get Stuck Taking Their Companies Online

Why are top executives getting frustrated at their teams during COVID-19? One reason: it’s obvious to them that the company needs to become a digital operation. They may also be very demanding but don’t blame them: they alone can see a joined-up world beyond the pandemic that most subordinates can’t.

In the past few years, my consulting firm has implored our clients to include a digital strategist on their boards, executive ranks and strategic planning retreats. Only a tiny few have risen to the occasion, adding someone (usually much younger) to strategy discussions, which seemed to be about a faraway future.

COVID-19 has changed the timeline.

As we scan the outputs of prior client retreats we see that the long-term plans they made were painfully slow. They imagined a gradual drift into a digital world where people’s behaviors would change eventually, imperceptibly.

Today, they must make changes to go online from offline in a matter of months. However, CEO’s are having a difficult time getting their executive teams to envision a future that even their youngest employees can see. Why?

In a nutshell, each company function is lost in its own silo. Marketing, HR, Operations, IT…each is unable to lead the way. The new vision is beyond their grasp because it requires joined-up thinking. 

What should CEOs’ do to accelerate the process of forging a digital transformation?

1. Forgive Weak Repetition

Many top executives get mad when their functionaries simply try to copy the offline world to the one that’s online.

For example, advertising on the internet involves more than putting up digital billboards. It requires an understanding of engagement psychology, content and technology which few possess. The average marketing department won’t know how to gamify an audience, or perhaps even how to create one.

But this is to be expected. And forgiven.

While initial attempts are weak, they represent a certain level of willingness, and the start of a steep climb. However, CEO’s must insist on an unprecedented level of cooperation right away. They need to role-model an eagerness to cross internal boundaries to discover ideas and talent wherever it may be found. For example, if the new receptionist has 10,000 followers on Instagram, pull her in!

2. Focus on Underlying Business Results

To overcome the initial disappointment, executives should encourage experiments which aren’t meant to replicate old processes, but still achieve the same objectives.

For instance, a company which is used to engaging its walk-in customers in ways that make the experience special, cannot offer the usual free coffee, air-conditioning and relaxed banter. Instead, they must ask themselves why those features worked and what emotions they were intended to evoke.

In like manner, pastors that relied on the right blend of hymns, testimonies and sermons to keep congregants coming back for more can’t rely on these elements.  In these times, they need to go beyond the superficial form of these activities and find the underlying benefit that is being delivered.

In other words, they must begin all over again. Unfortunately, Facebook, Instagram and Netflix are just a single click away, along with every other online church service in the world. The only hope they have of competing is to experiment and make mistakes to learn what will deliver the a similar experience via the internet.

3. Learn New Functionality

Recently, I hosted a virtual conference that attracted several hundred global registrants. Behind the scenes of the Time Blocking Summit I was forced to pick up new tools, and with it, unique capabilities I barely understood.

In retrospect, I can laugh at my mishaps running ads on Facebook, Instagram, Quora and Google, but I had to make an effort. It was the only way to apprehend the power of these tools, which have no equivalent in the offline world.

These capabilities are highly nuanced, able to break down old barriers. For example, think of your employees using WhatsApp and Zoom to organize themselves into cross-functional teams. They do so on their own time, without the involvement of management, training themselves to using these apps to create new connections across boundaries. In the offline world, it would have been impossible.

Case in point: companies now need a private, community forum to keep dispersed staff members together. Too many executives, stuck in “Mi nuh use them ting deh” social-media prejudices, can’t lead the charge.

The COVID-19 crisis favors CEOs’ who are willing to push themselves to learn uncomfortable lessons that used to be optional, theoretical or futuristic. Today, they need to be visible role models of learning in order to lead in these extraordinary times. 

http://jamaica-gleaner.com/article/business/20200503/francis-wade-crisis-favours-digitally-bold-ceo

FirstCuts30 – Action the Obama Way

The latest issue of FirstCuts, my bi-monthly newsletter is available at the following link:

http://fwconsulting.com/news.php?sub=13&newsid=153

It starts with the following introduction:

——————————————————
Editorial

I don’t know how Obama would do if he were an executive in our
region, and I don’t know if he has ever worked in our part of the
world.

However, after writing this month’s issue I now have an idea
of what he’d have to do to address the plantation slavery
work-ethic that has prevailed for over 500 years.

It’s not that we ourselves don’t have a clue, but I have found
that the clearer I understand the world in which I operate, the
better I am at succeeding within it. Some of the most exciting
moments I have ever had, have occurred when I learned something
new about something I had been doing for some time.

Perhaps that’s not a bad way to describe what I have been trying
to do for my readers in each issue of FirstCuts, and especially
in this issue.

Francis

To subscribe, send email to firstcuts@aweber.com